Clean Buses for New York Kids - How Electric School Buses Can Create Healthy Communities, Good Jobs, and Clean Rides for Kids in New York - Jobs ...
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Clean Buses for New York Kids How Electric School Buses Can Create Healthy Communities, Good Jobs, and Clean Rides for Kids in New York By Ian Elder, Jobs to Move America Photo credit: Minnesota DOT/Flickr
Clean Buses for New York Kids How Electric School Buses Can Create Healthy Communities, Good Jobs, and Clean Rides for Kids in New York By Ian Elder, Jobs to Move America TABLE OF CONTENTS Executive Summary......................................................................................................ii Introduction....................................................................................................................1 Section I: School Bus Services in New York.................................................................1 Section II: Economics and Performance of Electric School Buses...............................3 Section III: Funding Investments in Electric School Buses...........................................6 Section IV: Procurement of School Buses and School Bus Services............................9 Section V: Integrating Electric School Buses with the Grid...........................................16 Conclusion ....................................................................................................................24 JobsToMoveAmerica.org /JobsToMoveAmerica @JobsMoveAmerica Clean Buses for New York Kids i
Clean Buses for New York Kids: How Electric School Buses Can Create Healthy Communities, Good Jobs, and Clean Rides for Kids in New York By Ian Elder, Jobs to Move America Executive Summary Volkswagon settlement for electric school buses through its New York Truck Voucher Incentive Program, which will help fund up to fifty ESBs. Before the COVID-19 pandemic, more than 2 million New York students relied on the state’s Job quality standards in automotive 46,000 school buses to get to and from school manufacturing have decreased over the last each day. The vast majority of these school several decades; at the same time, jobs in New buses are powered by diesel engines, which York school bus operations have been at risk. are major producers of toxic emissions and State laws that prohibit best-value contracting greenhouse gases, with an outsized impact on in school bus contracting and commodities children, school bus workers, and environmental purchasing make it harder for the state to justice communities. promote good jobs. By enacting progressive procurement practices, New York can maintain Electric school buses (ESBs), which emit no job quality for school bus drivers, attendants, tailpipe pollutants, have proven effective in the and technicians; create good jobs in ESB field and have been successfully deployed at two manufacturing; and ensure that marginalized sites in New York State. ESBs are available with workers have access to these opportunities. ranges large enough to cover most school bus routes; planning, learning, and coordination are School buses are well suited to electrification: necessary for successful ESB deployment. they have relatively short duty cycles and lower range requirements than many other fleet The largest barrier to widespread deployment of vehicles. Operators must coordinate with their ESBs is price: ESBs currently cost triple the price utilities on the installation of charging equipment, of comparable diesel buses. Many ESB operators electricity pricing, and potentially the provision have reported lower fuel and maintenance costs of V2G services. The New York Public Service for ESBs, and ESBs have the potential to earn Commission’s make-ready order provides revenue by providing vehicle-to-grid (V2G) valuable funding for infrastructure and fleet services; however, these cost savings are not assessment services. yet enough to make ESBs affordable. The best way to hasten the transition to ESBs is to provide V2G can potentially provide crucial revenue significant purchase subsidies, which will boost to school districts and play an important production and lower prices over time. role in providing the storage necessary to incorporate renewable energy sources. However, Some federal ESB funding has come from the technology is in very early stages of the Diesel Emissions Reduction Act and implementation; ConEdison’s school bus V2G the Congestion Mitigation and Air Quality pilot may be the only deployment in the state Improvement Program, which helped fund two so far. major pilots in New York. At the state level, New York has recently released funds from the Clean Buses for New York Kids ii
POLICY RECOMMENDATIONS school buses; this report suggests that an even faster transition may be possible. New York State Policies • Implement an electrification policy for any • Create a large and stable funding stream for municipalized school bus operations. In 2020 electric school buses. One promising avenue the New York City Department of Education is the New York Climate and Community created a new nonprofit organization to take Investment Act, under consideration in the 2021 over the operations of a major city school legislative session. It would use proceeds from bus contractor. New York City can lead a price on air pollutants to fund environmental the way on school bus electrification by initiatives, including ESBs, and advocates setting an aggressive policy to transition the are pushing for it to include progressive organization’s fleet to ESBs while promoting procurement policies to create good green jobs. good jobs through progressive procurement • Adopt California’s groundbreaking zero- practices. emission vehicle mandate for manufacturers: the Advanced Clean Trucks regulation. Passing the regulation would create important market signals and help hasten the transition for school buses and other medium- and heavy-duty vehicles. • Create a New York Jobs Plan for school bus procurements to promote good jobs and inclusive hiring in school bus manufacturing and to incentivize manufacturers to produce locally. • Require best-value procurement for school transportation contracts. Best-value procurement for school bus services would allow fleet operators to compete on quality and community benefits, not just price, and would improve job quality and stability for school bus drivers, attendants, and technicians. New York City Policies • Facilitate the creation of a major ESB pilot. So far, the city has purchased two ESBs. However, the city has the opportunity to lead on ESBs by deploying eight to twelve buses. • Pass a citywide electric school bus mandate. A mandate may be the fastest and most efficient way to ensure a quick transition to ESBs, which will provide major environmental health benefits to New York children and to the communities where school buses operate. As of February 2021, there was a proposal before the City Council to mandate a transition to electric Jobs to Move America iii
Introduction populations, including women, Black workers, Indigenous workers, other workers of color, veterans, and formerly incarcerated people. Every day, New York’s school buses safely transport more than 2 million students to and Electric school buses provide the opportunity to from school. Thanks to school buses, students in increase access to high-road jobs and to improve New York can get to and from school even when the environment while providing students with they live far away and their parents are unable safe, healthy rides to school. This report presents to drive them. But yellow school buses have a an overview of the state of ESB technology big disadvantage: as heavy-duty, diesel-burning and examines available funding sources, vehicles, they impose major environmental grid considerations, and policy pathways that and health burdens on the students, drivers, advocates, parents, workers, school districts, technicians, and communities they come into and policymakers can pursue to promote the contact with. Technological fixes, such as deployment of ESBs in a way that creates the particulate matter filters and oxidation catalysts, maximum benefit for New York residents. have significantly cut some of the worst pollution. But even with these improvements, modern diesel buses emit harmful quantities of particulate Section I: School Bus matter, nitrogen oxides, and carbon monoxide Services in New York while also contributing to our consumption of greenhouse-gas-emitting fossil fuels. USE OF SCHOOL BUSES Fortunately, we are now at the cusp of a IN NEW YORK technological development that could eliminate Before the COVID-19 pandemic, New the negative impacts of school bus pollution in York State’s school bus fleets transported the near future. Electric school buses (ESBs) approximately 1.8 million public school students, emit little or no tailpipe pollution,1 and their total representing 71 percent of the state’s public emissions of greenhouse gases are much lower school population.3 New York school districts also than diesel buses, particularly in relatively low- transported more than 600,000 private school carbon electrical grids such as New York’s.2 students daily—more than any other state. The potential advantages of electrifying our There are approximately 46,000 yellow school school bus fleets are enormous. In addition to the buses in the state, second only to Texas, which health and environmental benefits, ESBs present has roughly 48,000.4 New York’s school buses a valuable opportunity to create high-quality jobs. represent 9.6 percent of school buses in the Progressive procurement policies and effective nation. organizing can help ensure that the jobs created If New York converted its school bus fleet to in the heavy-duty electric vehicle (EV) supply electric vehicles, it could lead a much-needed chain are safe, pay well, and provide career revolution in the student transportation sector, opportunities for people from underrepresented eliminating students’ exposure to dangerous emissions from combustion engines in the very 1 Some ESBs use fossil fuel–powered heaters, which emit pollution; others rely on electric heaters, which completely eliminate bus emis- vehicles that are meant to transport them safely sions but decrease vehicle range. to school. It would also make a significant impact 2 Ready for Work: Now Is the Time for Heavy-Duty Electric Vehicles on the state’s carbon footprint and, if done right, (Cambridge, MA: Union of Concerned Scientists, 2019), 7, https://www. ucsusa.org/sites/default/files/2019-12/ReadyforWorkFullReport.pdf. Because a lot of electricity is still generated through the combustion of 3 fossil fuels, electric vehicles still cause greenhouse gas (GHG) emis- “Pupil Transportation Statistics,” School Bus Fleet, 2020, https:// sions; the less carbon-based a state’s grid is, the greater the reduction www.schoolbusfleet.com/download?id=10117405&dl=1. 4 in GHG emissions compared to diesel vehicles. “Pupil Transportation Statistics.” Clean Buses for New York Kids 1
Figure 1. A Type A school bus. Photo by Kentaro Toma on Unsplash. help create good green jobs in New York and Legal Requirements other manufacturing centers in the country. Relative to the rest of the United States, New York relies heavily on school buses to transport As in most states, school bus procurement in its students. In large part, this is because most New York is a highly dispersed process because districts are required to provide transportation, it is mostly managed by school districts or by even to private school students.6 At a minimum, the private companies that many school districts most districts must provide transportation for hire to run their transportation operations. School younger students living at least two miles from districts manage approximately half of New York school, or three miles for high school students. State’s school bus operations; the other half of school bus operations are contracted out. In New Many school districts provide transportation York City, contractors perform all school bus more generously than required. For example, operations.5 Rochester, Syracuse, and Yonkers all provide transportation for students living more than 1.5 The state does play several important roles miles from school, and sometimes closer for in student transportation, however. The state younger students. New York City provides bus Department of Education approves bus service for K–2 students living at least a half mile purchases by districts as well as proposed from school and for students in grades 3 to 6 transportation contracts. The state also living at least a mile away. Older students receive subsidizes a substantial portion of districts’ free public transit passes.7 transportation costs through state aid. The Office of General Services (OGS) negotiates statewide All schools are required to provide transportation commodity purchase contracts with school bus for students with disabilities to attend special dealers, and districts are encouraged to take classes and programs, as specified by their advantage of these contracts. individualized education plans.8 In many cases, 6 5 New York State Education Law, Section 3635. This may be changing: the Department of Education has created a 7 nonprofit organization to run some school bus operations. This devel- New York City Chancellor’s Regulation A-801. 8 opment is discussed in more detail in Section IV. New York State Education Law, Section 4402(4)(a). Jobs to Move America 2
special education students receive home-to-school attendants or matrons, help keep students on the service. bus safe and often assist students with special needs. There are approximately 19,430 school Nationwide, school buses are replaced an average bus monitors in New York, and in 2018 these of every fifteen years for Type C and D (standard workers earned a mean hourly wage of $15.06.14 and large) school buses and every fourteen years for Types A and B (small buses).9 If New York were School bus technicians make up a much smaller to replace all its retiring buses in a given year portion of the workforce, with an average of one with ESBs, it would need to procure more than technician for every twenty-two school buses in three thousand of them—more than the current a fleet.15 If this ratio holds in New York, there are combined ESB manufacturing capacity of two of approximately 2,100 school bus technicians in the three main North American ESB makers: Lion the state. According to an industry survey, these Electric and Blue Bird.10 employees earn an average of $19.90 per hour.16 School bus drivers, attendants, and technicians SCHOOL BUS TERMINOLOGY in New York are often represented by unions, School buses are divided into Types A, B, C, and including local affiliates of the Amalgamated D, according to their size and shape. Type A is the Transit Union, the Transport Workers Union, and smallest school bus. These buses are often used the International Brotherhood of Teamsters. to transport special education students, who often One manufacturer of school buses is located receive door-to-door service.11 Drivers sometimes in New York. Trans Tech is located in Warwick, refer to these as vans. manufactures Type A school buses (including Type C buses are conventional school buses with an all-electric model), and employs more than the engine in front of the windshield.12 Type B sixty workers. According to the company, it sells buses are in between Types A and C in size; they between six hundred and eight hundred school are relatively uncommon. buses a year and had sold twenty electric school buses as of February 2021.17 The statewide Type D buses are also called transit-style buses. economic impact of school bus manufacturing They seat the largest number of passengers. is not limited to Trans Tech, however, since the There are currently several models of ESBs of company uses several New York suppliers. Types A, C, and D. STUDENT TRANSPORTATION OCCUPATIONS IN NEW YORK Section II: Economics and The main occupations in school bus transportation Performance of Electric are transportation manager or director, driver, School Buses attendant, and technician. In New York there are approximately 49,390 school bus drivers—slightly By far, the biggest barrier to the wide-scale more than one per bus. In 2018 school bus deployment of electric school buses is cost. drivers in the state earned a mean hourly wage Currently, an ESB costs at least three times as of $20.11.13 School bus monitors, also known as 9 “Maintenance Survey,” School Bus Fleet, March 2020, https://www. 14 “Occupational Employment and Wages, May 2019, 33-9098 School schoolbusfleet.com/download?id=10117417&dl. 10 Bus Monitors and Protective Service Workers, All Other,” US Bureau Both manufacturers claim the capacity to make one thousand electric of Labor Statistics, https://www.bls.gov/oes/current/oes339098.htm. school buses per year. 15 11 Nichole Schlosser, “Maintenance Survey 2020,” School Bus Fleet, Michael Cordiello (president, Amalgamated Transit Union Local 1181- https://www.schoolbusfleet.com/maintenance/10117417/mainte- 1061), conversation with author, August 19, 2020. nance-survey-2020. 12 New York Codes, Rules, and Regulations, Title 17, Section 720.1. 16 Schlosser, “Maintenance Survey 2020.” 13 “Occupational Employment and Wages, May 2018, 53-3022 Bus Driv- 17 Miguel Ortiz (sales staff, Trans Tech), email correspondence with ers, School or Special Client,” US Bureau of Labor Statistics, https:// author, February 4, 2021. www.bls.gov/oes/2018/may/oes533022.htm. Clean Buses for New York Kids 3
Figure 2. A Type C school bus. Photo by Tomas Eidsvold on Unsplash. Figure 3. Type D school buses. Photo by James Day on Unsplash. Jobs to Move America 4
much as an equivalent diesel bus. The New York as fleet operators have become more adept State–negotiated contract price for a standard- at making full use of planned charging tools size diesel Blue Bird Vision Type C school bus (discussed further in Section V). is $105,743; the price of the electric version Maintenance costs for ESBs are also expected from the same dealer is $345,765.18 In addition to be lower than those for diesel buses because to the price of the bus, the cost of installing the of the relative simplicity of electric motors and necessary infrastructure can be substantial. the cleanliness of electricity as a fuel. However, Costs vary widely depending on the technology most of the ESBs currently in use are still used and the characteristics of the bus yard, but under warranty, and it will take time to get a infrastructure can cost a fleet operator anywhere comprehensive sense of ESB maintenance costs. from $2,000 to $80,000 per bus.19 Although ESBs can potentially provide significant The best way to reduce the ESB price differential savings on fuel and maintenance costs, these is to expand the market through reliable savings can vary dramatically, and fleet operators subsidies. Across a wide range of technologies, will need to perform their own assessments. prices historically tend to drop dramatically as Electric utilities and bus dealers can be valuable production increases.20 For example, the price resources for districts attempting to better predict of electric vehicle batteries has dropped steeply these cost savings. For the time being, savings over the past decade. Bloomberg New Energy on fuel and maintenance are currently too small Finance reported in 2019 that prices had already to make up for ESBs’ higher purchase and fallen by 87 percent compared to 2010, from installation costs. All in all, we are probably still at more than $1,100 per kilowatt-hour (kWh) to least ten years away from having accurate total- $156 per kWh, and predicted that by 2023 prices cost-of-ownership estimates for ESBs. would fall by an additional 35 percent, to $100 per kWh.21 A final potential cost mitigator is the development of vehicle-to-grid (V2G) services. Because school Electric school buses can have lower fuel and buses have large batteries and long, predictable maintenance costs than diesel buses, which can periods during which they are not being used, result in significant savings in operating costs. they may be able to generate revenue by Because ESB engines are more efficient than providing services to the electric grid, such as diesel engines, they are often much cheaper to releasing electricity back to the grid during peak fuel—depending on the relative costs of diesel usage hours. Such services are cutting edge and fuel and electricity. In practice, results from cannot yet be counted on for revenue, but they ESB pilot projects have been positive but mixed appear promising. For example, Dominion Energy plans on subsidizing more than one thousand 18 “40524-23000 School Buses: Award Summary,” New York Office of electric school buses in Virginia to benefit from General Services, September 15, 2020, https://online.ogs.ny.gov/pur- chase/spg/pdfdocs/4052423000Summary.pdf. ESB energy storage capabilities. Vehicle-to-grid 19 Costs Associated with Non-Residential Electric Vehicle Supply considerations, including a V2G demonstration Equipment (Washington, DC: US Department of Energy, 2015), https://afdc.energy.gov/files/u/publication/evse_cost_report_2015.pdf. project in White Plains, are discussed further in The largest determinant of this cost is whether the operator chooses Section V. Level 2 AC chargers or Level 3 DC fast charging. DC chargers can be three times as fast as AC chargers but are between three and eighteen times more expensive to purchase and install. ESBs can use either In terms of performance, ESBs have proven type, but not all models can use both. to work reliably for fleet operators that have 20 Béla Nagy, J. Doyne Farmer, Quan M. Bui, and Jessika E. Trancik, “Statistical Basis for Predicting Technological Progress,” PLoS ONE 8, overcome the challenges of paying for them. no. 2: e52669, https://doi.org/10.1371/journal.pone.0052669. Anecdotally, many ESB operators reported 21 “Battery Pack Prices Fall as Market Ramps Up with Market Average that they experienced problems in the first few at $156/kWh in 2019,” BloombergNEF, December 3, 2019, https:// about.bnef.com/blog/battery-pack-prices-fall-as-market-ramps-up- months after putting their buses into service with-market-average-at-156-kwh-in-2019/. Jobs to Move America 5
but that they were able to resolve these issues these payments included establishment of a fairly quickly by working with the manufacturer or $2.93 billion trust fund to support the replacement dealer. For example, ESB deployments in White of diesel engines with cleaner technology.25 New Plains (in Westchester County) and Bay Shore York was allocated $127,691,807 from the VW (in Suffolk County) both faced initial challenges funds. Of this amount, $52,411,527 (41 percent) in cold weather, which led to some downtime has been dedicated to the replacement or early on. In both cases, the fleet operators were repowering of transit buses, shuttle buses, and able to fix the issues and achieved high reliability school buses.26 thereafter.22 In its beneficiary mitigation plan, the New York State Department of Environmental Conservation Section III: Funding (DEC) stated its intent to use the money to Investments in Electric purchase approximately one hundred all-electric transit buses and “400 new electric, alternative School Buses fuel, or diesel-powered school and paratransit buses.” The plan stated a preference for all- We’ve seen that cost is the main barrier keeping electric technology when possible and that school districts from investing widely in electric priority would be given to environmental justice school buses, and experience shows that the communities. DEC’s plan also includes funding best way to bring down cost is to manufacture for school bus chargers, commonly known as at scale. Manufacturing ESBs at scale, however, electric vehicle supply equipment (EVSE).27 is a challenge when school districts cannot Diesel Emissions Reduction Act (DERA) afford to purchase them in the first place. This The Diesel Emissions Reduction Act (DERA) is a chicken–egg problem illustrates the need for federal statute enacted as part of the US Energy smart, serious government investment in electric Policy Act of 2005. Implemented by the EPA, school buses. This section describes national DERA provides three lines of funding for new and state-level funding streams that are currently ESBs: the National Grants Program, the School available to support ESB purchases and to help Bus Rebates Program, and the State Grants drive economies of scale. Program. NATIONAL FUNDING SOURCES The State Grants Program, while helpful for diesel mitigation, provides funds on the order Volkswagen Diesel Emissions Environmental of $500,000 to New York annually—not enough Mitigation Trust Fund (VW Funds) to support significant ESB purchases. Similarly, From 2006 to 2015, Volkswagen engaged in the School Bus Rebates Program has been a scheme to evade Environmental Protection successful in helping replace thousands of Agency (EPA) emissions requirements on several the nation’s oldest and worst-polluting buses; of its vehicles.23 The EPA sued the company, however, until late 2020, the subsidy of $15,000 and in 2016 the company agreed to settlement to $20,000 was too small to support ESB payments totaling up to $14.7 billion.24 One of 25 22 See the White Plains case study in Section V and the Bay Shore “Volkswagen Clean Air Act Civil Settlement,” https://www.epa.gov/ case study in Section III. enforcement/volkswagen-clean-air-act-civil-settlement. 26 23 Jack Ewing, “Volkswagen Says 11 Million Cars Worldwide Are “VW Environmental Mitigation Trust—Semi Annual Report,” New Affected in Diesel Deception,” New York Times, September 22, 2015, York State Department of Environmental Conservation, January 16, https://www.nytimes.com/2015/09/23/business/international/volkswa- 2020, https://www.vwenvironmentalmitigationtrust.com/sites/default/ gen-diesel-car-scandal.html. files/2020-01/NY%20Semi%20Annual%20Report%20July%20to%20 24 Hiroko Tabuchi and Jack Ewing, “Volkswagen to Pay $14.7 Billion to Dec%202019%2001162020.pdf.pdf. 27 Settle Diesel Claims in US,” New York Times, June 27, 2016, https:// Clean Transportation NY (Albany: New York Department of Environ- www.nytimes.com/2016/06/28/business/volkswagen-settlement-die- mental Conservation, 2019), 19, https://www.dec.ny.gov/docs/air_pdf/ sel-scandal.html. vwcleantransportplan19.pdf. Clean Buses for New York Kids 6
purchases. In October 2020, the EPA announced a expanded to play a meaningful role in facilitating higher level of funding for ESBs—up to $65,000.28 ESB deployment around the country. This increase is a significant improvement and Congestion Mitigation and Air could help fund the purchase of ESBs if combined Quality Improvement Program with state and local funding sources. The Congestion Mitigation and Air Quality In contrast, DERA’s National Grants Program Improvement Program (CMAQ) is another federal provides the most robust support for diesel funding source states can use to subsidize emission reduction projects. Funds are awarded purchases of electric school buses. Administered on a competitive basis to government entities by the Federal Highway Administration (FHWA), the and transportation nonprofits, and the maximum program distributes funds to state governments, funding request per application is $2.5 million.29 which use the money to pay for projects that National Grants allow for federal funding of up to reduce congestion and improve air quality in 45 percent of the cost of an electric bus.30 Projects nonattainment areas.34 The program funds up to 80 are prioritized according to a number of factors, percent of the incremental cost of alternative fuel including fleets operating in areas with poor air vehicles (for instance, about $190,000 for a Type quality and fleets serving environmental justice C bus), which is likely enough to achieve parity in communities.31 Grant recipients can combine total cost of ownership between ESBs and diesel DERA funds with state or local subsidies but school buses. cannot combine DERA funds with other federal The FHWA estimated that New York would receive grants or with VW fund money.32 Contractors $197,491,169 in CMAQ funding in 2020.35 Of cannot apply for DERA grants, but school districts that amount, the New York State Department of can apply for grants for buses that may be used by Transportation (NYSDOT), which administers the their contractors. state’s CMAQ funds, allotted $10 million to the New In 2020 the program planned to award York Truck Voucher Incentive Program (NYTVIP), approximately $44 million in funds33 and between which supports school bus purchases (discussed two and eight grants in each of the ten EPA below).36 Even though the CMAQ program can regions. EPA Region 2, which includes New pay for up to 80 percent of the incremental cost York, New Jersey, Puerto Rico, and the US Virgin of electric vehicles, NYSDOT has set much lower Islands, was slated to receive $4.3 million. subsidy limits for electric school buses funded through NYTVIP using CMAQ funds (approximately For a school district lucky enough to win a DERA $120,000 for a Type C bus). National Grant (such as Bay Shore; see box), this program could enable the purchase of several NEW YORK STATE FUNDING SOURCES electric school buses. However, as a competitive grant program with limited funding spread out New York Truck Voucher Improvement Program across a broad range of projects, the National The NYTVIP is the most valuable subsidy Grants Program would need to be significantly reliably available to New York school bus 34 28 2020 Diesel Emissions Reduction Act (DERA) School Bus Rebates “Congestion Mitigation & Air Quality Improvement Program (CMAQ),” Program Guide (Washington, DC: US Environmental Protection Agency, Federal Highway Administration, March 2016, https://www.fhwa.dot.gov/ 2020), https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P101030H.pdf. fastact/factsheets/cmaqfs.pdf. Nonattainment areas are areas that do not 29 meet national ambient air quality standards for ozone, carbon monoxide, 2020 DERA National Grants Request for Applications (Washington, or particulate matter. DC: Environmental Protection Agency, 2020), https://www.epa.gov/sites/ 35 production/files/2019-12/documents/2020-dera-national-grants-compe- “Estimated Highway Apportionments Under the FAST Act,” Federal tition-12-2019.pdf. Highway Administration, 2016, https://www.fhwa.dot.gov/fastact/est- 30 fy20162020apports.xlsx. 2020 DERA National Grants, 29. 36 31 New York Truck Voucher Incentive Program Implementation Manual 2020 DERA National Grants, 1–2, 19. (Albany: New York State Energy Research and Development Authority, 32 2020 DERA School Bus Rebates Program Guide, 27. 2020), 7, https://portal.nyserda.ny.gov/servlet/servlet.FileDownload?- 33 2020 DERA National Grants, 1. file=00Pt000000R4WXbEAN. Jobs to Move America 7
Case Study Bay Shore Schools and Suffolk Transportation Service Electric School Bus Deployment Suffolk County in Long Island is home to New York’s second-largest deployment of electric school buses to date. The Bay Shore School District and its contractor, Suffolk Transportation Service (STS), worked together to successfully apply for a DERA National Grant of $695,500, which helped pay for four fifty-five-passenger Type C electric Blue Bird buses and the necessary chargers and infrastructure.37 According to Richard Gallagher, director of transportation at Bay Shore Schools, the buses currently work very well, after some initial difficulties operating in wintry conditions.38 For example, some of the electronic controls did not work in the cold, and low temperatures reduced battery performance. STS and Bay Shore Schools successfully solved both issues by affixing wind blockers to the fronts of buses and wrapping batteries in blankets.39 The contractor and the district have the buses running regular routes, with approximately three-hour duty cycles. Two of the buses have to charge in the middle of the day to complete their shifts. Overall, Gallagher said he was delighted to be able to transport students in clean buses at no additional cost to the district. John Corrado, STS’s president, stated in November 2019 that his company was looking to bring ESBs to Brentwood and Central Islip schools shortly.40 According to Gallagher, STS upgraded its bus depot to be able to charge ten ESBs, which required installing a new transformer. 37 “New York Contractor, District Roll Out 4 Electric School Buses,” School Bus Fleet, November 22, 2019, https://www.schoolbusfleet.com/ news/736497/new-york-contractor-district-roll-out-4-electric-school-buses. 38 Richard Gallagher (transportation director, Bay Shore Schools), conversation with author, September 22, 2020. 39 Richard Gallagher, conversation with author. 40 Rachel O’Brien, “Bay Shore Goes Green and Saves Some Green with Conversion to All-Electric Buses,” Newsday, November 20, 2019, https:// www.newsday.com/long-island/suffolk/bus-electric-epa-grant-carbon-footprint-1.38733204. operators seeking to replace old diesel school 2020, only CMAQ funds were available for buses with battery electric school buses. The electric school buses; however, on December 29, program is administered by the New York State 2020, NYSERDA announced that it would start Energy Research and Development Authority to make Volkswagon funding available for school (NYSERDA), a state agency that works to deploy buses as well. clean energy, with technical assistance from School districts and fleet operators can now use CALSTART, a nonprofit consultant. The NYTVIP NYTVIP funding from either source; however, the uses money from the VW funds and CMAQ to advantage of VW funds is that they provide much provide vouchers for point-of-sale discounts for larger vouchers: up to $200,000 for a Type C bus, low- and zero-emission vehicles. Until December Clean Buses for New York Kids 8
as opposed to $120,000 using CMAQ funds.41 be domiciled within designated disadvantaged For both funding sources, the size of the voucher communities or serve such communities. depends on the size of the bus. As of the end of 2020, only one school district, White Plains, had taken advantage of NYTVIP funds, and it did so Section IV: Procurement with additional financial and technical support of School Buses and from ConEdison. The new, larger vouchers using VW funds will likely make it possible for many School Bus Services districts and contractors to afford to invest in In addition to practical considerations such as ESBs for the first time. NYSERDA announced funding and performance, transitioning to electric an initial investment of $2 million, with additional school buses involves a range of overlapping investments to come and plans to fund a total of policy issues. In particular, this section discusses approximately fifty ESBs.42 the critical importance of using inclusive NYTVIP vouchers require that purchasers scrap procurement in the transition to ESBs to ensure a currently operating, older diesel bus for each that the public gets the most benefit from its discounted bus they buy.43 This requirement to investment. scrap old buses guarantees that heavy-polluting Student transportation is a public service, paid for diesel buses are taken off the road forever; by the public. We, our families, and our neighbors however, it can also be a challenge for some bus are the ones who fund, benefit from, and are fleets seeking to purchase electric school buses.44 impacted by the choices our elected officials Some operators use newer buses and typically make in how our children are transported to and sell and replace buses before the end of their from school. School bus procurement policy can useful lifetimes. This practice would preclude have a major impact in at least three different these fleets from using NYTVIP money.45 ways: it can dramatically improve air quality and The NYTVIP school bus voucher is designed to health outcomes for students and neighborhoods; ensure that the new buses it funds are equitably it can help ensure high job quality for school distributed. Funds are split equally between bus drivers, attendants, and technicians; and it upstate and downstate. The program limits the can help create good jobs for the workers who school bus vouchers to five per school district, manufacture school buses. except in New York City, which could have up to twenty. (The district total includes both contractor- Electric School Buses for Healthy Children and a Better Climate owned and district-owned buses.) Contractors Diesel bus emissions have serious negative are limited to twelve buses total, even if they impacts on the health of students who ride the serve several school districts. Finally, school buses. Studies have shown that particulate buses purchased under the program must either matter pollution is more severe inside the cabin of a bus than outside the bus or on the roadway.46 Because of their growing lungs, children may 41 New York Truck Voucher Incentive Program Implementation Manual, 17. 42 Adam Ruder (NYSERDA staff member), conversation with author, be especially susceptible to developing or August 4, 2020. NYSERDA provided an additional $500,000 in this exacerbating respiratory illnesses from diesel round of VW funding to give discounts for compressed natural gas school buses; see New York Truck Voucher Incentive Program Imple- mentation Manual. 43 New York Truck Voucher Incentive Program Implementation Manual, 46 Sara Adar, Jennifer D’Souza, Lianne Sheppard, Joel D. Kaufman, 24. Model years 1992–2009 qualify for replacement. Teal S. Hallstrand, Mark E. Davey, James R. Sullivan, Jordan Jahnke, 44 Richard Gallagher, conversation with author. Jane Koenig, Timothy V. Larson, and L. J. Sally Liu, “Adopting Clean 45 This requirement applies to all NYTVIP vouchers, whether funded Fuels and Technologies on School Buses,” American Journal of by CMAQ or the VW funds. It is a legal requirement of all VW funds but Respiratory and Critical Care Medicine 191, no. 12 (June 15, 2015): not of CMAQ funds generally. 1413–21, https://dx.doi.org/10.1164%2Frccm.201410-1924OC. Jobs to Move America 9
exhaust.47 Cleaner buses are associated with job instability due to the state’s bidding rules.52 lower absenteeism rates and higher test scores.48 The city bids its school bus contracts out by routes, which means that companies can gain The depots where school buses park are major or lose business depending on how many routes sources of pollution, with negative impacts for they win. Companies that lose routes have to lay school bus employees and local communities. off employees. Every day, drivers, attendants, and technicians are exposed to high levels of emissions at bus For more than three decades, it was industry depots.49 According to New York Lawyers for the practice for the city’s Department of Education Public Interest, school bus depots in New York to require companies to rehire laid-off workers City are predominantly located in environmental at their previous wage levels, but in 2011 the justice communities that are already impacted by New York State Court of Appeals decided that severe air pollution.50 the practice violated state law.53 Since that time, nonunion contractors have underbid incumbent Now that electric school bus technology is companies, resulting in mass layoffs of available, we have the unprecedented opportunity experienced school bus workers. With the school to radically reduce the emissions that students, transportation industry on the cusp of a revolution workers, and families are exposed to. The faster in school bus technology, now may be the we are able to transition to ESBs, prioritizing opportune time to improve school bus contracting the communities most severely impacted by practices as well. pollution, the faster we will be able to improve environmental justice outcomes and provide High-Road Manufacturing for healthier rides to school for our children. Electric School Buses Manufacturing is still a critically important sector Good Jobs for School Bus Drivers, in New York as well as in the United States as Attendants, and Technicians a whole. Historically, it has been a major source Contracting out school bus operations is a of well-paying jobs; manufacturing jobs still pay common choice for school districts in New York, better than comparable nonmanufacturing jobs.54 especially for large-city school districts. In such Currently, manufacturing represents 5.9 percent cases, the district hires a company to own and of private-sector jobs in the state, and in eight operate school buses on its behalf. Unfortunately, New York counties it represents more than 25 school districts are currently required by state law percent of all jobs.55 to award transportation contracts to the lowest bidder,51 which makes it challenging for districts to Unfortunately, manufacturing faces major ensure that contractors maintain good job quality constraints and trends that limit the sector’s standards or use ESBs. potential to be an equitable source of good jobs. First of all, although manufacturing The issue is especially acute in New York City, where all school bus operations are contracted out and school bus workers currently face serious 52 The New York City Department of Education is in the process of mu- nicipalizing one of its contractors through a nonprofit organization. The change will affect approximately 10 percent of its school bus routes. 47 John Wargo, Children’s Exposure to Diesel Exhaust on School 53 L&M Bus Corp. v. New York City Dept. of Education, 17 NY3d 149 Buses (North Haven, CT: Environment & Human Health, 2002), https:// [2011]. www.ehhi.org/reports/diesel/dieselintro.pdf. 54 48 Susan Helper, Timothy Krueger, and Howard Wial, Why Does Man Wes Austin, Garth Heutel, and Daniel Kreisman, “School Bus Emis- ufacturing Matter? Which Manufacturing Matters? (Washington, DC: sions, Student Health, and Academic Performance,” Economics of Brookings Institution, 2012), https://www.brookings.edu/wp-content/ Education Review 70 (June 2019): 109–26, https://doi.org/10.1016/j. uploads/2016/06/0222_manufacturing _helper_krueger_wial.pdf. econedurev.2019.03.002. 55 49 Ken Pokalsky, Manufacturing by the Numbers: A Profile of New Michael Cordiello, conversation with author. York’s Manufacturing Sector by Jobs, Wages and Regional Impact 50 Testimony of Justin Wood before the New York City Council Com- (Albany: Public Policy Institute of New York State, 2018), http://www. mittee on Education, October 16, 2018. ppinys.org/reports/2018/18-0142-PPI-Manufacturing-by-the-Num- 51 New York State Education Law, Section 305. bers-Report.pdf. Clean Buses for New York Kids 10
has provided good jobs to many people with and create good inclusive jobs at the same time; and without college degrees, it has often doing so will take committed organizing by New disproportionately excluded certain groups, Yorkers and bold leadership by elected officials. including women, people of color, and formerly The policies outlined below represent incarcerated people.56 Making efforts to include components of a comprehensive plan to electrify these communities in job and apprenticeship New York’s bus fleet, protect good school bus opportunities would address these inequities jobs, and ensure high standards for school bus and ultimately benefit companies that choose to manufacturing work. None of these policies alone develop a diverse and highly skilled workforce.57 will achieve all these goals; however, they are Second, many US manufacturers have pursued useful building blocks for an effective school bus strategies that focus on compensating employees procurement policy that will improve the lives of as little as possible. For example, many firms families and workers across New York. have moved to regions of the United States with weak labor rights standards; others have STATEWIDE POLICIES used staffing agencies to avoid paying workers Create a Reliable Funding Stream benefits.58 These strategies have shrunk wages for Electric School Buses and worsened working conditions for many The most serious obstacle to deploying ESBs employees in the manufacturing sector and is funding. Without large and reliable subsidies, have limited the potential of firms to compete it is currently impossible for districts to afford on innovation and quality. Alternatively, ESBs. At the same time, creating a heavy and manufacturers could pursue high-road strategies, consistent demand for ESBs will be one of the provide continuous training and compensation most effective ways to drive down their price. to their employees, and seek employees’ Unfortunately, securing funding during the collaboration. Highly skilled workers improve COVID-19 pandemic could prove harder than the ability of firms to innovate and respond to ever, with state and local budgets cut to the bone. consumer and industry demands.59 One promising way to solve this puzzle is to Government has a role to play in promoting a create new streams of funding that are directly diverse workforce in manufacturing, and one connected with combating pollution and climate of the policy options that can help achieve this change. California has had major success with is inclusive procurement. Agencies can use this approach so far: the state has already used inclusive procurement policies to give preference smog abatement fees, license plate surcharges, to manufacturers that practice equitable, inclusive and cap-and-trade auction proceeds to subsidize hiring and that create high-quality, lifelong the purchase of hundreds of ESBs. These careers for people from all backgrounds. New policies work as both a disincentive to pollute and York can transition to clean electric school buses as a source of investment in clean technologies. 56 Robert Pollin, James Heintz, and Jeanette Wicks-Lim, Strength- New York’s environmental and social justice ening US Manufacturing through Public Procurement Policies (Amherst, MA: Political Economy Research Institute, 2015), https:// advocacy communities are working to follow www.peri.umass.edu/publication/item/download/605_a6fd493d6b- California’s example and even improve on its 72d04391e94f421be0f501. 57 model. In 2019 a broad coalition called NY Cedric Herring, “Does Diversity Pay? Race, Gender, and the Busi- ness Case for Diversity,”American Sociological Review 74, no. 2 (April Renews successfully pushed for the passage 1, 2009): 208–24, https://doi.org/10.1177%2F000312240907400203. 58 of the Climate Leadership and Community Catherine Ruckelshaus and Sarah Leberstein, Manufacturing Low Pay: Declining Wages in the Jobs That Built America’s Middle Class Protection Act (CLCPA), which set aggressive (New York: National Employment Law Project, 2014), http://stage.nelp. greenhouse gas reduction targets for the state. org/wp-content/uploads/2015/03/Manufacturing-Low-Pay-Declin- ing-Wages-Jobs-Built-Middle-Class.pdf. (Jobs to Move America is a member of NY 59 Helper et al., Why Does Manufacturing Matter? Jobs to Move America 11
Renews.) The coalition is currently promoting set clear expectations for manufacturers and a measure called the Climate and Community electric utilities, providing market certainty, Investment Act (CCIA), which would help which makes it easier to plan for investments in achieve the CLCPA’s targets by putting a price electric vehicles and EV infrastructure.61 State on pollutants and using the proceeds to invest EV mandates have so far proven highly effective in green technologies, reduce the state’s carbon at increasing adoption of electric passenger footprint, and create family-supporting jobs. vehicles.62 If the CCIA is passed, it could provide an ideal In June 2020, the California Air Resources funding source for ESBs. Advocates are pushing Board adopted the Advanced Clean Trucks for the CCIA to include a version of the US (ACT) regulation, which requires that a certain Employment Plan (discussed below) and a percentage of the heavy-duty road vehicles each policy called the Local Employment Plan, which manufacturer sells in the state be zero-emission together would encourage fair compensation vehicles. These percentages increase each year, and inclusive hiring for many of the jobs the act from 9 percent of new sales in 2024 to 75 percent creates. Passing the CCIA, along with dedicated of new sales in 2035.63 It has been estimated that funds for replacing old diesel school buses with ESBs will achieve total cost of ownership parity ESBs, would help accelerate deployment of ESBs with diesel buses between 2025 and 2030, which across the state and create good jobs in school may mean that ESBs could transition much more bus manufacturing. quickly than the time frame specified in the ACT rule. However, the regulation will be extremely California has also implemented a low carbon valuable in helping transition the entire medium- fuel standard, which is a price incentive for and heavy-duty vehicle sector in California to less climate-intensive transportation fuels such zero-emission vehicles on a predictable time as electricity. New York is considering joining scale.64 a similar program: the Transportation Climate Initiative (TCI), a multistate cap-and-trade The ACT rule is possible because the federal agreement that would cap the sale of gasoline Clean Air Act allows California to obtain a waiver and diesel fuel. If implemented, TCI could to adopt emissions regulations stronger than potentially provide funding for electric school federal standards without being preempted by buses. However, environmental justice advocates federal law. Other states, in turn, may adopt have argued that the proposal is not tailored to whatever rules California passes without fear addressing disproportionate impacts of pollution of federal preemption.65 New York Senate Bill in marginalized communities.60 S8765A, introduced in 2020 by former state Implement Advanced Clean Trucks in New York 61 Matthew N. Metz and Janelle London, “State Vehicle Electrification Mandates and Federal Preemption,” Michigan Journal of Environmen- To transition as quickly as possible to ESBs, it tal & Administrative Law 9 (2020): 433–82, https://doi.org/10.36640/ will help to not only increase demand through mjeal.9.2.state. 62 Lia Cattaneo, Plug-in Electric Vehicle Policy: Evaluating the Effec- subsidies but also to increase supply by setting tiveness of State Policies for Increasing Deployment (Washington, DC: zero-emission vehicle targets for manufacturers. Center for American Progress, 2018), https://www.americanprogress. org/issues/green/reports/2018/06/07/451722/plug-electric-vehicle- Subsidies can temporarily boost the market policy. for a new technology and hopefully result in 63 California Air Resources Board, Final Regulation Order—Advanced Clean Trucks, submitted January 29, 2021, https://ww3.arb.ca.gov/ enough increased production to drive down regact/2019/act2019/fro2.pdf. These percentages would apply to Type prices. Mandatory targets, on the other hand, C and Type D school buses; requirements for Type A school buses would start at 5 percent in 2024 and increase to 55 percent by 2035. 64 Conner Smith, Electric Trucks and Buses Overview (Washington, 60 Sarah Shemkus, “Justice Advocates Keep Pressure on Transpor DC: Atlas Public Policy, 2019), https://atlaspolicy.com/wp-content/up- tation Emission Pact Planners,” Energy News Network, October 15, loads/2019/07/Electric-Buses-and-Trucks-Overview.pdf. 65 2020, https://energynews.us/2020/10/15/northeast/justice-advo- Clean Air Act, Public Law 88-206, 88th Cong., 1st sess. (December cates-keep-pressure-on-transportation-emission-pact-planners/. 17, 1963), Section 209, 42 U.S.C. § 7543. Clean Buses for New York Kids 12
senator Jen Metzger, would implement the ACT in their RFPs for school buses that require bus regulations in New York. Also in 2020, New York dealers to include NYJPs, with information committed to work with fourteen other states and about the wages and benefits of manufacturing the District of Columbia to rapidly transition to workers, the number of jobs to be created, and zero-emission medium- and heavy-duty vehicles; how they plan to hire inclusively. Manufacturers adopting a mandate such as the ACT rule with strong NYJPs would receive extra points in could be an important step toward meeting that the bid evaluation process. commitment.66 New York currently has centralized procurement Create a New York Jobs Plan for for district-owned school buses, and legislation School Bus Procurements will be necessary to incorporate NYJPs into New York can use inclusive procurement policies the process. School districts have the power to help cultivate a high-road manufacturing to purchase their own buses, a process that is sector for school buses. Half of the state’s school typically managed by the district’s transportation buses are purchased, owned, and operated by director. However, districts are highly encouraged school districts; if the state were to use inclusive to purchase their buses using contracts procurement practices, it could have a significant established by the state’s OGS,69 which will not positive impact on school bus manufacturing.67 approve expenditures greater than the state contract price.70 One example of inclusive procurement in practice is the US Employment Plan (USEP), Although OGS does not directly purchase school which several transit agencies, including the buses, it issues competitive solicitations for Metropolitan Transit Authority (MTA), have used bus dealers and signs contracts with the lowest to promote good jobs and inclusive hiring in the bidder. State agencies and school districts can manufacture of transit buses and trains. When then purchase school buses from dealers using agencies include the USEP in their requests for statewide contracts. OGS’s current statewide proposals (RFPs), they allow manufacturers to school bus contract, which extends through improve their chances of selection by committing November 30, 2021, includes ESB models for to creating jobs with family-sustaining wages and Types A, C, and D. Only government entities, inclusive hiring practices.68 such as school districts, can purchase vehicles through OGS contracts.71 Following the model of the USEP, the state could create a New York Jobs Plan (NYJP) policy to Having a statewide contract for school buses is improve jobs in school bus manufacturing and a helpful tool for school districts; however, this create good jobs in New York. To implement process could be even more beneficial if OGS such a policy, agencies would include provisions were able to incorporate inclusive procurement practices. Currently, state law requires that 66 “Multi-State Medium- and Heavy-Duty Zero Emission Vehi- contracts for commodities be awarded to the cle Memorandum of Understanding,” NESCAUM, July 13, 2020, https://www.nescaum.org/documents/multistate-truck-zev-gover- nors-mou-20200714.pdf. 69 67 “Pupil Transportation Statistics,” School Bus Fleet, 2017–18, https:// “Pupil Transportation Economical and Efficient Practices,” New York www.schoolbusfleet.com/download?id=10117405&dl=1. State Education Department, April 19, 2018, http://www.p12.nysed. 68 gov/schoolbus/TransDirector/htm/economical_practices.htm. The USEP was developed by experts at Jobs to Move America, the 70 Brookings Institution, the University of Southern California’s Program Or the statewide median cost if there is no state contract for the ve- for Environmental and Regional Equity, and the Political Economy hicle. Kathy Beardsley, R. Fiddemon, M. Los, S. Morrison, M. Mosher, Research Institute and was approved by the US Department of D. Rowe, and J. Tamburello, Reference Guide to Transportation Aid Transportation for use by transit agencies. For a discussion of how (Castleton, NY: State Aid & Financial Planning Service, October 2020), the USEP has been used to promote good jobs in transit bus and train 11, https://www.questar.org/wp-content/uploads/2020/10/Final-Refer- manufacturing, see Jobs to Move America’s report on battery electric ence-Guide-Transportation-Aid-Guidebook-2020-21.pdf. 71 transit buses: Christy Veeder, “Transforming Transit, Realizing Oppor- “School Buses (Statewide): How to Use This Contract,” New York tunity,” Jobs to Move America, July 2019, https://jobstomoveamerica. Office of General Services, December 2016, https://online.ogs.ny.gov org/resource/transforming-transit-realizing-opportunity/. /purchase/spg/pdfdocs/4052423000HowToUse.pdf. Jobs to Move America 13
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